What Global Policy Makers Are Saying About the Stock Slide

(Bloomberg) -- A second day of sharp equities sell-offs in Asian markets, spurred on by a plunge in U.S. stocks on Monday, has put policy makers on watch for further pain.

Here’s what officials around the world have been saying about the markets:

United States

• The White House released a statement in response to queries about the markets, saying President Donald Trump is focused “on our long-term economic fundamentals, which remain exceptionally strong”
• Vice President Mike Pence told reporters while traveling that the sell-off was “very likely simply the ebb and flow of our stock market”

Japan

• Bank of Japan Governor Haruhiko Kuroda told lawmakers in parliament on Tuesday that Japanese stocks were affected by the U.S. decline
• Economic fundamentals are still firm in Japan and abroad, and stocks move on various factors in the short term, Kuroda said, in response to questioning
• Prime Minister Shinzo Abe, at the same session of parliament, said he trusts Kuroda to handle monetary policy; Kuroda said the BOJ will continue its monetary easing as inflation is only halfway to its 2 percent target

South Korea

• Markets in South Korea have been rattled by the drop in U.S. stocks, a Bank of Korea official, who asked not to be identified due to internal BOK policy, said on Tuesday
• Authorities are closely monitoring the foreign-exchange market, which should be strong enough to absorb the negative effects of the market jolt, the official said

India

• The market decline in India is related to the global sell-off, Finance Secretary Hasmukh Adhia said from New Delhi on Tuesday
• Global markets are interrelated and India is not an island, said Adhia

Indonesia

• Indonesian stocks and the rupiah are taking a hit from the global market rout, while economic fundamentals remain healthy, Suahasil Nazara, head of the fiscal policy agency at the Finance Ministry, said Tuesday in a text message
• “We expect investors will be more in favor of Indonesia, especially when global markets are in an adjustment period like now,” Nazara said
• The government will monitor market developments and global bond issuance while maintaining fiscal, monetary and structural policy reforms, Nazara said

Australia

• The Reserve Bank of Australia’s statement made no mention of markets on Tuesday after the central bank left interest rates unchanged for a record 16th meeting, amid a resurgent currency and subdued inflation
• RBA Governor Philip Lowe might have something to say on the market sell-off on Thursday, when he’s scheduled to speak ahead of the release of the RBA’s quarterly growth and inflation forecasts on Friday

Singapore

• Deputy Prime Minister Tharman Shanmugaratnam, the coordinating minister for economic and social policies, tweeted a link Tuesday to a Washington Post opinion piece that argues the correction could prove a healthy “awakening” and a sign of post-crisis healing
• “Worth reading this @scmallaby piece,” Tharman said in the tweet

--With assistance from Christopher Anstey Anirban Nag and Tassia Sipahutar

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net.

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Henry Hoenig

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